Travelers expected to report lower quarterly revenue and EPS
Shares of Travelers TRV.N gained 1.0% on Thursday ahead of quarterly results due before the bell on Friday, with investors watching for profit trends amid lower estimates.
The property and casualty insurer is expected to report quarterly revenue of $11.35 billion vs. $11.54 billion a year ago, and adjusted EPS of $5.42 vs. $6.51 a year ago, per LSEG.
The company has beaten analysts' earnings expectations in all of the past eight reporting periods, per LSEG.
"Pricing remains a key area of focus," Jefferies analysts wrote in a recent note.
"Persistent pressure in property rates, limited evidence of casualty reacceleration, and a higher property mix for some carriers in 2Q point to further sequential moderation in reported pricing. Our analysis suggests TRV's RRC could slow by 50bps+ QoQ to 2.6% in 2Q26E," they wrote.
Of 31 analysts covering the stock, seven rate it 'buy' or 'strong buy', 20 'hold' and four 'sell' or 'strong sell'.
Wall Street's median 12-month price target for Travelers is $326.50, about 3.1% below its last closing price of $336.83.
The stock has risen about 15% year to date, outperforming the S&P 500's roughly 10% gain.
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